SOURCE: Navios Maritime Partners L.P.

Navios Maritime Partners L.P.

April 28, 2010 07:00 ET

Navios Maritime Partners L.P. Reports Financial Results for the First Quarter Ended March 31, 2010

1.2% Increase in Cash Distribution to $0.415 per Unit for Q1 2010

67.9% Increase in Quarterly Operating Surplus to $17.8 Million

44.9% Increase in Quarterly EBITDA to $21.3 Million

40.0% Increase in Quarterly Net Income to $12.6 Million

PIRAEUS, GREECE--(Marketwire - April 28, 2010) - Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM), an owner and operator of dry cargo vessels, reported its financial results for the first quarter ended March 31, 2010.

Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated: "I am pleased with our performance during the first quarter we engaged in a number of transactions that created stability of Navios Partners by raising additional equity, adding vessels and reducing leverage. With the $62.4 million we raised in the equity markets, we purchased the Navios Aurora II, thereby increasing the average charter coverage to 4.1 years and reducing the average age of our fleet to 6.2 years. By consistently implementing our strategy, we have been able to steadily increase quarterly distributions by a total of 18.6% since we went public about 2.5 years ago."

Ms. Frangou continued, "We believe that we are well positioned to take advantage of growth opportunities in 2010."

RECENT DEVELOPMENTS

Increase in Cash Distributions

The Board of Directors of Navios Partners declared a cash distribution for the first quarter of 2010 of $0.415 per unit. This represents an increase of 1.2% from $0.41 per unit declared in the fourth quarter of 2009. The distribution is payable on May 13, 2010 to holders of record on May 10, 2010.

Acquisition of Vessels

On March 18, 2010, Navios Partners purchased from Navios Holdings the vessel Navios Aurora II, a 169,031 dwt Capesize vessel built in 2009, for a price of $110.0 million. Navios Aurora II has been chartered out at a net rate of $41,325 per day until November 2019. The annual EBITDA is expected to be approximately $12.9 million.

Following the acquisition of Navios Aurora II, Navios Partners' operational fleet consists of 13 drybulk vessels comprised of two Capesize, ten Panamax and one Ultra-Handymax vessels. The fleet has a total capacity of approximately 1.2 million dwt and an average age of approximately 6.2 years.

Credit Facility

On March 30, 2010, Navios Partners entered into an amendment to its existing credit facility ("Credit Facility") and borrowed an additional $30.0 million under a new tranche to partially finance the acquisition of Navios Aurora II. The amendment provides for, among other things, a new interest rate margin ranging from 1.25% to 1.65% depending on the applicable loan to value ratio.

Completion of Offering of 4,025,000 Common Units raising $62.4 million gross proceeds

On February 8, 2010, Navios Partners completed its public offering of 3,500,000 common units at $15.51 per unit and raised gross proceeds of approximately $54.3 million to fund its fleet expansion. The net proceeds of this offering were approximately $51.8 million. On the same date, the overallotment option was exercised resulting in the issuance of 525,000 additional common units, raising additional gross proceeds of $8.1 million and net proceeds of approximately $7.8 million. Pursuant to this offering, Navios Partners issued 82,143 additional general partnership units to its General Partner raising net proceeds of $1.3 million.

Long Term and Insured Cash Flow

Navios Partners has entered into long-term time charter-out agreements for all 13 vessels with a remaining average term of 4.1 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 100.0% for 2010, 84.6% for 2011 and 79.7% for 2012 generating revenues of approximately $130.3 million, $118.8 million and $113.8 million, respectively. The average contractual daily charter-out rate for the fleet is $27,980, $29,595 and $30,001 for 2010, 2011 and 2012, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2010 is $13,449.

Navios Partners' charter-out contracts have been insured by an AA+ rated European Union governmental agency.

FINANCIAL HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statement of operations for the three month periods ended March 31, 2010 and 2009. The quarterly 2010 and 2009 information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA and Operating Surplus are non-US GAAP financial measures and should not be used in isolation or substitution for Navios Partners' results.

                                            Three Month      Three Month
                                            Period ended     Period ended
                                           March 31, 2010   March 31, 2009
($'000)                                     (unaudited)      (unaudited)
                                          ---------------- ----------------
Revenues                                  $         29,413 $         21,157
EBITDA                                    $         21,341 $         14,728
Net income                                $         12,585 $          8,959
Earnings per Common unit (basic and
 diluted)                                 $           0.39 $           0.41
Operating Surplus                         $         17,808 $         10,550
Maintenance and Replacement Capital
Expenditures Reserve                      $          3,299 $          1,957

Three month period ended March 31, 2010

Time charter and voyage revenues for the three month period ended March 31, 2010 increased by $8.2 million, or 38.7%, to $29.4 million as compared to $21.2 million for the same period in 2009. The increase was mainly attributable to the acquisition of the rights to the Navios Sagittarius in June 2009 and the acquisition of the Navios Apollon on October 29, 2009, the Navios Hyperion on January 8, 2010 and the Navios Aurora II on March 18, 2010.

EBITDA increased by $6.6 million to $21.3 million for the three month period ended March 31, 2010 as compared to $14.7 million for the same period of 2009. This $6.6 million increase in EBITDA was primarily due to an $8.2 million increase in revenue as a result of the delivery of Navios Sagittarius in June 2009, Navios Apollon in October 2009, Navios Hyperion in January 2010 and Navios Aurora II in March 2010, into Navios Partners' fleet. The above increase was mitigated by: (a) a $1.4 million increase in management fees as a result of the increased number of vessels in Navios Partners' fleet; and (b) a $0.2 million increase in general and administrative.

The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended March 31, 2010 and 2009 was $3.3 million and $2.0 million, respectively. Expansion capital expenditures reserve for the three month periods ended March 31, 2010 and 2009 was $175.8 million and $0, respectively (please see Reconciliation of Non-GAAP Financial Measures on Exhibit 3).

Navios Partners generated Operating Surplus for the three month period ended March 31, 2010 of $17.8 million in comparison to $10.6 million for the three month period ended March 31, 2009. Operating Surplus is a non-GAAP financial measure used by certain investors to measure the financial performance of Navios Partners and other master limited partnerships (please see Reconciliation of Non-GAAP Financial Measures on Exhibit 3).

Net income for the three months ended March 31, 2010 amounted to $12.6 million compared to $9.0 million for the three months ended March 31, 2009. The increase in net income by $3.6 million was due to: (a) a $6.6 million increase in EBITDA; (b) a $1.2 million decrease in interest expense; (c) a $0.1 million increase in interest income; and (d) a $0.1 million decrease in direct vessel expenses. The overall increase of $8.0 million was partly offset by a $4.4 million increase in depreciation and amortization expense due to the acquisition of the Navios Sagittarius, Navios Apollon, Navios Hyperion and Navios Aurora II and the backlog assets that were recognized in relation to these acquisitions.

Fleet Employment Profile

The following table reflects certain key indicators indicative of the performance of Navios Partners and its core fleet performance for the three month periods ended March 31, 2010 and 2009.

                                           Three Month      Three Month
                                           Period ended     Period ended
                                          March 31, 2010   March 31, 2009

                                          --------------   --------------
Available Days  (1)                              1,080.5              810
Operating Days  (2)                                1,075            809.6
Fleet Utilization  (3)                             99.51%           99.95%
Time Charter Equivalent (per day)         $       27,222   $       26,120
Vessels operating at period end                       13                9


(1) Available days for the fleet represent total calendar days the vessels
    were in our possession for the relevant period after subtracting off-
    hire days associated with major repairs, drydockings or special
    surveys. The shipping industry uses available days to measure the
    number of days in a relevant period during which a vessel is capable
    of generating revenues.

(2) Operating days is the number of available days in the relevant period
    less the aggregate number of days that the vessels are off-hire due to
    any reason, including unforeseen circumstances.  The shipping industry
    uses operating days to measure the aggregate number of days in a
    relevant period during which vessels actually generate revenues.

(3) Fleet utilization is the percentage of time that our vessels were
    available for revenue generating available days, and is determined by
    dividing the number of operating days during a relevant period by the
    number of available days during that period.  The shipping industry
    uses fleet utilization to measure efficiency in finding employment for
    vessels.

Conference Call details:

Navios Partners' management will host a conference call to discuss the results on Wednesday, April 28, 2010, at 8:30 am EDT.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers:

US Toll Free Dial In: +1866 819 7111
UK Toll Free Dial In: +0800 953 0329
International Dial In: +44 (0) 1452 542 301
Please quote "NAVIOS MLP".

A telephonic replay of the conference call will be available until May 5, 2010 by dialing the following numbers:

US Toll Free Dial In: +1866 247 4222
UK Toll Free Dial In: +0800 953 1533
International Dial In: +44 1452 550 000
Access Code: 33433537#

Slides and audio webcast:

There will also be a live webcast of the conference call, through the NAVIOS MARITIME PARTNERS L.P. website (www.navios-mlp.com) under "Investors". Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

A supplemental slide presentation will be available on the Navios Maritime Partners L.P. website at www.navios-mlp.com under the "Investors" section at 7:45 am EDT on the day of the call.

About Navios Maritime Partners L.P.

Navios Maritime Partners L.P. (NYSE: NMM), a publicly traded master limited partnership formed by Navios Maritime Holdings Inc (NYSE: NM) is an owner and operator of dry cargo vessels. For more information, please visit our website at www.navios-mlp.com

Forward Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and Navios Partners' growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "may," "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. Although the Navios Partners believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which Navios Partners operates; risks associated with operations outside the United States; and other factors listed from time to time in the Navios Partners' filings with the Securities and Exchange Commission. Navios Partners expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Partners' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

                                                                  EXHIBIT 1
                     NAVIOS MARITIME PARTNERS L.P.
                 CONDENSED CONSOLIDATED BALANCE SHEETS

       (Expressed in thousands of U.S. Dollars except unit data)



                                                 March  31,   December 31,
                                                    2010          2009
                                                ------------  ------------
                                                (unaudited)
ASSETS
Current assets
Cash and cash equivalents                       $     25,373  $     77,878
Restricted cash                                          823        13,322
Accounts receivable, net                                 837           602
Prepaid expenses and other current assets              2,319           777
                                                ------------  ------------
Total current assets                                  29,352        92,579
                                                ------------  ------------
Vessels, net                                         426,921       299,695
Deferred financing costs, net                          1,912         1,431
Other long term assets                                   359           179
Intangible assets other than goodwill                103,539        40,372
Deposits for vessel acquisitions                          --         2,500
                                                ------------  ------------
Total non-current assets                             532,731       344,177
                                                ------------  ------------
Total assets                                    $    562,083  $    436,756
                                                ============  ============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accounts payable                                $      1,042  $        518
Accrued expenses                                       1,727         1,844
Deferred voyage revenue                                9,294         9,025
Amounts due to related parties                         8,342         1,964
                                                ------------  ------------
Total current liabilities                             20,405        13,351
                                                ------------  ------------
Long-term debt                                       236,500       195,000
Unfavorable lease terms                                2,163         2,662
Deferred voyage revenue                               16,063        17,753
                                                ------------  ------------
Total non-current liabilities                        254,726       215,415
                                                ------------  ------------
Total liabilities                                    275,131       228,766
                                                ------------  ------------
Commitments and contingencies                             --            --
Partners' Capital:
   Common Unitholders (29,491,034 and
    24,291,815 units issued and outstanding at
    March 31, 2010 and December 31, 2009,
    respectively)                                    448,242       369,747

   Subordinated Unitholders (7,621,843 units
    issued and outstanding at March 31, 2010
    and December 31, 2009)                          (165,117)     (164,004)

   General Partner (777,815 and 671,708 units
    issued and outstanding at March 31, 2010
    and December 31, 2009, respectively)              (2,255)       (3,835)

   Subordinated Series A Unitholders (1,000,000
    units issued and outstanding at March 31,
    2010 and December 31, 2009)                        6,082         6,082
                                                ------------  ------------

Total partners' capital                              286,952       207,990
                                                ------------  ------------
Total liabilities and partners' capital         $    562,083  $    436,756
                                                ============  ============



                        NAVIOS MARITIME PARTNERS L.P.
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (Expressed in thousands of U.S. Dollars except unit and per unit amounts)


                                              Three Month    Three Month
                                             Period ended   Period ended
                                               March 31,      March 31,
                                                 2010           2009
                                              (unaudited)    (unaudited)
                                             -------------- --------------
Time charter and voyage revenues             $       29,413 $       21,157
Time charter and voyage expenses                     (2,919)        (3,008)
Direct vessel expenses                                  (32)          (124)
Management fees                                      (4,058)        (2,610)
General and administrative expenses                  (1,079)          (902)
Depreciation and amortization                        (7,690)        (3,277)
Interest expense and finance cost, net               (1,191)        (2,425)
Interest income                                         157             57
Other income                                             44             91
Other expense                                           (60)            --
                                             -------------- --------------
Net income                                   $       12,585 $        8,959
                                             ============== ==============

Earnings per unit:



                                                  Three Month  Three Month
                                                  Period ended Period ended
                                                   March 31,    March 31,
                                                     2010         2009
                                                  (unaudited)  (unaudited)
                                                  ------------ ------------
Net income                                        $     12,585 $      8,959

Earnings attributable to:
     Common unit holders                                10,323        5,612
     Subordinated unit holders                           2,012        3,138
     General partner unit holders                          250          209
     Subordinated Series A unit holders                      -            -

Weighted average units outstanding (basic and
 diluted)
     Common unit holders                            26,800,027   13,631,415
     Subordinated unit holders                       7,621,843    7,621,843
     General partner unit holders                      722,896      433,740
     Subordinated Series A unit holders              1,000,000            -

Earnings per unit (basic and diluted):
Common unit holders                               $       0.39 $       0.41
Subordinated unit holders                         $       0.26 $       0.41
General partner unit holders                      $       0.35 $       0.48
Subordinated Series A unit holders                $          - $          -





                         NAVIOS MARITIME PARTNERS L.P.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                   (Expressed in thousands of U.S. Dollars)


                                              Three Month     Three Month
                                             period Ended    period Ended
                                            March 31, 2010  March 31, 2009
                                            --------------  --------------
                                              (unaudited)     (unaudited)
OPERATING ACTIVITIES
Net income                                  $       12,585  $        8,959

Adjustments to reconcile net income to net
 cash provided by operating activities:
Depreciation and amortization                        7,690           3,277
Amortization and write-off of deferred
 financing cost                                        102              62
Amortization of deferred dry dock costs                 32             124

Changes in operating assets and
 liabilities:
Increase in restricted cash                             (1)           (820)
Increase in accounts receivable                       (235)           (465)
(Increase)/decrease in prepaid expenses and
 other current assets                               (1,542)            260
Increase in other long term assets                    (212)             --
Increase in accounts payable                           524             283
Decrease in accrued expenses                          (117)           (389)
(Decrease)/increase in deferred voyage
 revenue                                            (1,421)         28,717
Increase in amounts due to related parties           6,378           3,040
                                            --------------  --------------
Net cash provided by operating activities           23,783          43,048
                                            --------------  --------------

INVESTING ACTIVITIES:
Acquisition of vessels                            (102,572)             --
Acquisition of intangibles other than
 goodwill                                          (73,185)             --
                                            --------------  --------------
Net cash used in investing activities             (175,757)             --
                                            --------------  --------------

FINANCING ACTIVITIES:
Cash distributions paid                            (15,087)         (8,675)
Proceeds from issuance of general partner
 units                                               1,682              --
Proceeds from issuance of common units, net
 of offering costs                                  59,457              --
Proceeds from long term debt                        54,000              --
Decrease/(increase) in restricted cash              12,500          (5,000)
Repayment of long-term debt and payment of
 principal                                         (12,500)        (40,000)
Debt issuance costs                                   (583)           (200)
                                            --------------  --------------
Net cash provided by/(used in) financing
 activities                                         99,469         (53,875)
                                            --------------  --------------
Increase in cash and cash equivalents              (52,505)        (10,827)
                                            --------------  --------------
Cash and cash equivalents, beginning of
 period                                             77,878          28,374
                                            --------------  --------------
Cash and cash equivalents, end of period    $       25,373  $       17,547
                                            ==============  ==============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW
 INFORMATION
Cash paid for interest                      $        1,270  $        2,278
Issuance of common units to Navios Holdings
 related to the acquisition of Navios
 Aurora II in March 2010                    $       20,325  $           --
                                            ==============  ==============


                                                                  EXHIBIT 2

                                                    Original
                                                    Charter       Original
                                                   Expiration  Charter Out
                                                    Date/New      Rate/New
                                                    Charter    Charter Out
                                         Capacity  Expiration     Rate per
Owned Vessels            Type    Built     (DWT)     Date  (1)     day (2)

Navios Gemini S         Panamax   1994    68,636   February 2014  $ 24,225
Navios Libra II         Panamax   1995    70,136   December 2010  $ 23,513
Navios Felicity         Panamax   1997    73,867       June 2013  $ 26,169
Navios Galaxy I         Panamax   2001    74,195   February 2018  $ 21,937
Navios Alegria          Panamax   2004    76,466   December 2010  $ 23,750
Navios Fantastiks      Capesize   2005   180,265      March 2011  $ 32,279
                                                   February 2014  $ 36,290
Navios Hope             Panamax   2005    75,397       May  2010  $ 10,643
                                                     August 2013  $ 17,562
Navios Apollon          Ultra     2000    52,073   November 2012  $ 23,700
                       Handymax
Navios Sagittarius      Panamax   2006    75,756   November 2018  $ 26,125
Navios Hyperion         Panamax   2004    75,707      April 2014  $ 37,953
Navios Aurora II       Capesize   2009   169,031   November 2019  $ 41,325


Long-term Chartered-in Vessels

Navios Prosperity (3)   Panamax   2007    82,535       July 2012  $ 24,000
Navios Aldebaran (4)    Panamax   2008    76,500      March 2013  $ 28,391



(1) Represents the initial expiration date of the time charter and, if applicable, the new time charter expiration date for the vessels with new time charters.

(2) Net time charter-out rate per day (net of commissions). Represents the charter-out rate during the time charter period prior to the time charter expiration date and, if applicable, the charter-out rate under the new time charter.

(3) Navios Prosperity is chartered-in for seven years starting from June 19, 2008 and we will have options to extend for two one-year periods. We have the option to purchase the vessel after June 2012 at a purchase price that is initially 3.8 billion Japanese Yen declining pro rata by 145 million Japanese Yen per calendar year.

(4) Navios Aldebaran was delivered on March 17, 2008. Navios Aldebaran is chartered-in for seven years and we have options to extend for two one-year periods. We have the option to purchase the vessel after March 2013 at a purchase price that is initially 3.6 billion Japanese Yen declining pro rata by 150 million Japanese Yen per calendar year.

EXHIBIT 3

Disclosure of Non-GAAP Financial Measures

1. EBITDA

EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is a "non-GAAP financial measure" and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.

EBITDA is presented to provide additional information with respect to Navios Partners' ability to satisfy its obligations including debt service, capital expenditures, working capital requirements and determination of cash distribution. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

2. Operating Surplus

Operating Surplus represents net income adjusted for depreciation and amortization expense, non-cash interest expense and estimated maintenance and replacement capital expenditures and expansion capital expenditures. Maintenance and replacement capital expenditures are those capital expenditures required to maintain over the long term the operating capacity of or the revenue generated by Navios Partners' capital assets. Expansion capital expenditures are those capital expenditures that increase the operating capacity of or the revenue generated by Navios Partners' capital assets.

Operating Surplus is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership's ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of Navios Partners' performance required by accounting principles generally accepted in the United States.

3. Available Cash

Available Cash generally means, for each fiscal quarter, all cash on hand at the end of the quarter:

--  less the amount of cash reserves established by the board of directors
    to:

    -  provide for the proper conduct of our business (including reserve
       for maintenance and replacement capital expenditures);
    -  comply with applicable law, any of Navios Partners' debt
       instruments, or other agreements; or
    -  provide funds for distributions to the unitholders and to the
       general partner for any one or more of the next four quarters;

--  plus all cash on hand on the date of determination of available cash
    for the quarter resulting from working capital borrowings made after
    the end of the quarter. Working capital borrowings are generally
    borrowings that are made under any revolving credit or similar
    agreement used solely for working capital purposes or to pay
    distributions to partners.

Available Cash is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership's ability to make quarterly cash distributions. Available cash is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of Navios Partners' performance required by accounting principles generally accepted in the United States.

4. Reconciliation of Non-GAAP Financial Measures



                                            (unaudited)      (unaudited)
                                            Three Month      Three Month
                                            Period ended     Period ended
                                             March 31,        March 31,
                                                2010             2009
                                              ($ '000)         ($ '000)
                                          ---------------  ---------------
Net Cash from operating activities        $        23,783  $        43,048
Net increase in operating assets                    1,990            1,025
Net increase in operating liabilities              (5,364)         (31,651)
Net interest cost                                   1,034            2,368
Deferred finance charges                             (102)             (62)
                                          ---------------  ---------------

EBITDA                                             21,341           14,728
Cash interest income                                  157               57
Cash interest paid                                 (1,270)          (2,278)
Expansion capital expenditures                   (175,757)              --
Equity Issuance                                    61,139               --
Borrowings to fund expansion capital
 expenditures                                      53,417               --
Release of expansion capital expenditures
 reserve                                           62,080               --
Maintenance and replacement capital
 expenditures                                      (3,299)          (1,957)
                                          ---------------  ---------------

Operating Surplus                                  17,808           10,550
Recommended reserves accumulated as of
 beginning of January 1                             4,459            2,127
   Recommended reserves held as of
    quarter end                                    (6,468)          (4,002)
                                          ---------------  ---------------
Available cash for distribution           $        15,799  $         8,675
                                          ===============  ===============



Contact Information

  • Contacts
    Investor Relations Contact:
    Navios Maritime Partners L.P.
    Investor Relations
    Nicolas Bornozis
    Capital Link, Inc.
    Tel. (212) 661-7566
    E-mail: naviospartners@capitallink.com